Sajeev Kamalasanan’s resignation from WP

A candidate in the last GE resigned from the Worker’s Party and made an allegation that it is ‘discriminating against Indians’ according to his press statement. How bad the timing is in view of the by election? At this point in time, every factor and matter counts to both parties and candidates in the election. To have a resignation of a key member is bad enough. To be accused of being racist may cause a lot of votes for the WP, true or otherwise. Some voters would be easily swayed by such a statement.

WP must count it as bad luck to have this incident splashing across the news everywhere. I am sure Sajeev’s resignation was not intended to do any harm to the WP. It just happened and no need to read too much into it. Still the WP would have some damage control to do.

Funny, it seems that such unpleasant things often happened to the opposition parties during a run up to an election. I hope Sajeev and the WP do not allow this matter to distract the main issues in the by election and the voters could put this aside for the moment. Alas, knowing how light the ears of the masses are, one goal has gone in.

Money, power politics and Wall Street

There is a four part documentary on the aftermath of the subprime crisis cum world financial crisis created by Wall Street in 2008. The documentary is quite lengthy and very detail in the key players involved in the crisis and the intricate handling and exposure of the toxic waste created by the brightest American financial minds, which happened to be kids really. The derivatives structured by these kids were meant to lower the risk of exposure by the banks to high risk subprime loans. But it multiplied and morphed into many other things and became a bigger risk that almost toppled the whole financial system of the world.

This documentary (http://video.pbs.org/video/2229573868/) is a must view for all regulators and govt officials meddling with their financial systems as well as finance professionals. The lessons to be learnt are many and they were obvious and avoidable but were pooh poohed away by the muscles of financial institutions and the corruption of the members of the Congress. They allowed the toxic waste to go into the system and grow without control, infecting not only Wall Street but also Main Street of America.

Have they learnt anything? With the recent loss of US$2b by JP Morgan Chase, does it tell anything? With the glorification of big earnings by the banks and hedge funds and paying themselves crazy again, do they say anything. As far as Wall Street is concerned, everything is back to normal, before crisis time, and all system is on a roll, just like the good old time. The same flawed and obscene financial system did not change a bit. Banks are still taking high risk is in derivative and proprietary tradings to make quick and easy money to pay themselves millions and billions all over again. Conservative bank practices are obsolete.

The first obvious fault of the subprime crisis was the culture of greed which led the greedy bankers to go after quick money and dumping morality and prudence in the back seat. The banks and hedge funds operators were just gambling, playing with other people’s money for quick and huge returns. And if anything wrong, like JP Morgan Chase, wait for the Fed to bail them out with the taxpayers money. They made the Fed to close both eyes, arguing that they need more freedom to execute their business. There is no need for disclosure. Deregulation and darkness fell on Wall Street. Transparency of deals by the banks and hedge funds were ignored for the bankers to hide whatever they were doing. They cooked the books, devised toxic products, engaged in proprietary tradings against their clients, all under the cover of deregulation or no regulations. They could commit mass murder in a way without anyone knowing, without transparency and accountability. All losses were reported as profits only to justify paying themselves crazily.

Without transparency, without regulations, without accountability, no one was wiser as to what was going on. The bankers kept chalking up glorious P&L, claiming billions of profits when the truth was that they were under billions of debt in taking up toxic waste and trading losses. As long as they could hide them under ingenious accounting, it was as good as sweeping everything under the carpet. And they partied and partied with ill gotten gains and kicking the problematic ball further down the road.

The simple age old wisdom that anything that cannot be told must be told as what cannot be told is simply dangerous was forgotten. That was why it could not see light and must be kept hidden. And Wall Street and the banks got away with it by bribing Congress to let them play bandits and robbers.

They even designed unfair and obscene trading systems using computers to trade against innocent small investors and no one will stand up to say it is wrong, it is unfair practice, it is cheating. And they even got their flawed and corrupted gaming system sold to the rest of the world as the system of the future, with high speed trading, derivatives and deregulation, high liquidity, high volume, high buzz and a quicker bust. They have gained access to many countries, and the stock markets are still ticking only superficially, kept alive by drips, when they are actually in the intensive ward, or nearly there.

Now the Americans are banging on the doors in Beijing to want to introduce such atrocious system to create havoc to the Chinese stock market and financial system. Would the Chinese be smart enough to say no and slam the door at the American face? They would need to seek wise counsel from the Hongkong Exchange to have a better feel of the evil in the system and the damage it is causing to the Hongkong market. There is a Chinese saying, ‘lai ze bu san, san ze bu lai.’ Pardon my translation, it basically says that those who dare to come are not easy to deal with or with ill intent. Ask a simple question, why are the Americans so forceful and persistent in wanting to break into the Chinese financial system? To do charity and bring money to the Chinese or to go in and scope everything there is in there? They have done severe damage to the Hongkong and Singapore financial market except that no one dares to admit it. The dead body is getting stiffer by the days and soon it would not be able to move completely.

Mortis rigor is only a short while away. The Chinese govt and other Asian regulators should view this documentary carefully and know what they are being led into and the dangers ahead. Would China be the last sucker to fall into the trap and become another victim of toxic waste?

Would there be any changes after this latest JP Morgan Chase failure? Some were calling for tighter regulations, invoking the Volcker’s Rule to prevent banks from proprietary trading and taking high risk. The real fault lies in the system, it is systemic, where the administrators and regulators colluded, gave their silent consent to daylight robbery. They could not see anything wrong with the system but were very clever in finding faults with the little guys. Until some of the administrators and regulators are put behind bars for being accomplices to the unfair trading practices in the financial markets, nothing will work. Never has the financial market been so deregulated, when unfair trading practices like high speed computer tradings, proprietary trading by banks against their clients, that cheating the small investors is fair game. And because New York sets the rule, the rest of the unthinking world markets just followed blindly. Were they dull or were they just having a good time with the gravy train?

Hopefully New York will set the precedence and prosecute the whole management team of NYSE for mismanagement and for allowing fraudulent trading practices into the system. Until then, the financial system and stock markets are only waiting to implode.

Buying American snake oil

Friday, May 11, 2012


Risky Systems, Dire Consequences...

Yesterday night a somber CEO had to announce publicly that his bank had lost U$2B dollars in set of complex synthetic derivatives trade,



This CEO is no ordinary CEO but the king of Wall Street, Jamie Dimon, one of the most astute bankers around. The bank went through the financial crisis unscathed but suffered heavy losses last week when a unit of the bank took on complex derivative positions that resulted in unexpected losses:



“This portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed,” - Jamie Dimon, CEO JP Morgan.[Link[



If Jamie Dimon and his bank can't figure the risk they were taking, how will the rest of us ever fully appreciate the risks we are exposed to? ….



The above is written by Lucky Tan in his Diary of a Singaporean Mind blog. It tells a lot about the kind of snake oil being introduced into the financial markets around the world and how the world blindly bought what the Americans sold. Singapore is one of them. China must resist all it can from being duped by the Americans. It is just not worth whatever returns there is. It can ruin financial institutions and the whole stock market. Only duds who think they know best or are gullible enough to believe the American’s sales pitch will go in with eyes wide shut.

North Korea is Singapore’s friend

Singapore is the third largest trading partner of North Korea. Its second highest ranking leader, Kim Yong Nam, had just paid an official visit with a trade delegation and is now in Indonesia for a similar purpose, to expand trade. Indonesia is also a good friend of North Korea.

But in Singapore, the North Koreans have many enemies. These are the unthinking Singaporeans who have been fed with a diet of anti North Korean misinformation written by westerners and proudly printed almost daily in our media. And the minds of these morons have been so tarnished that when they talked about the North Koreans, they behaved as if their homes have been burnt and looted by the North Koreans or their mothers were raped by them. Such simple minded people with an empty and unthinking head are easy to be programmed to think like little monkeys.

To these people, North Korea is bad, poor, abject poverty, famine, miserable people, aggressor, wanting to start a war with every country, wanting to send their nuclear missiles to attack them. Funny, do they know where is North Korea? Or do the North Koreans even think that these people exist? No, the North Koreans don’t even know of their existence and have had nothing to do with them. But why the hatred? Why did they think, or think they knew so much about North Korea to hate them? Daft is a very appropriate word here. Their whole thinking and mindset have been programmed for so many years that they are behaving exactly as what the programmers wanted them to behave.

Singapore is the third largest trading partner of North Korea. What does that say? Singapore’s leaders have been visiting North Korea frequently and the North Koreans too are visiting the island just as often. It is fortunate the leaders of Asean have not turned into puppets on a string and be made to dance by the puppeteers. They know that North Korea is just another country living its own way of life. And Singapore’s initiative to bring the North Koreans into the main stream of international relations like what it did to the Myanmese is the best way to go forward. Embrace the North Koreans and integrate them into the international community. Not threats of war and sanctions like hooligans and gangsters.

Singapore media has a role to educate the daft Sinkies to think objectively and not to be manipulated into how to think and what to think of the North Koreans in particular and the rest of the world in general.

Going back to the 60s

When Hsien Loong asked if Singaporeans want to go back to the 60s, I thought he was using that as a reminder that going back to the 60s was a bad thing. The things that are happening today point to one direction. It seems that it has all been planned for Singaporeans to go back to the good old 60s.



Just look at what Singaporeans have been told and how their lives are changing. The first thing is that they have been told to live in smaller flats and mentally prepared to think that small is good. They have also been prepared to go around in bicycles or take public transport. In the good old days, only the very rich drove cars, the rest took buses and private taxis. This too could become a reality.



Today I heard that Singaporeans are encouraged to become hawkers. What about the dreams of becoming doctors, lawyers and engineers? Actually becoming hawkers or pasar malam stall owners isn’t a bad thing. Hawkers can make big money and many are driving Mercedes and living in landed properties. I concur that this is an extremely good idea. No need to waste so much time and money for a university education only to buy a 3 rm flat on graduation, and maybe ended as a taxi driver or a hawker.



I am reminiscing the great times of those good old days of the 60s, carefree as a substitute to being out of jobs, and yes, our womenfolk were factory workers or maids. And my favourite, and in support of the govt policies, to integrate the foreigners, let’s live together with them under the same roof. Singaporeans can rent or share their flats with them, or they can rent or share their flats with Singaporeans. Then they can communicate and learn to live with each other happily and learning another culture and way of life. Singaporean’s life will be so much richer with the experience.



And of course there will be more hawker centres selling cheap and better food and faster in serving as well. Sounds like cbf. All the mothers need not worry so much about queuing for the best schools and wasting money on tuitions. Back then the aspirations were very low and thus not much stress in education. How much stress can there be if the aspiration is to be a hawker or a taxi or bus driver? Oops, actually taxi driving is the new ambition of PMETs when they can become their own bosses, independent, no one to breathe down their necks, a new breed of entrepreneurs or SME businessmen. Very 1960s.



We are progressing to the 60s. The new ambition of school children, 'I want to be a hawker.'